Bitcoin is currently trading at around $87,472 with a 3.23% gain in the past 24 hours. However, this calm may not last long as several major US economic reports are scheduled for this week, which could lead to increased volatility in the crypto markets. These reports include jobless claims and consumer sentiment, among others, and their outcomes could either fuel a rally or trigger a pullback in the crypto market.
One of the key economic events to watch is the Leading Economic Index (LEI) for April 21. It is expected to show a 0.5% decline, indicating weaker consumer confidence and slowing manufacturing activity. This could result in reduced risk appetite and a shift towards safer options like bonds. However, if concerns about the broader financial system increase, Bitcoin may benefit from its reputation as a digital safe haven.
Another important event is the Services PMI for April 23, which is expected to confirm solid growth in the US services sector. A reading above 50 would support the strong dollar narrative, but it could also weigh on Bitcoin as alternative assets become less attractive. Additionally, a stronger dollar reduces the chances of the Federal Reserve cutting interest rates, which could cool momentum in the crypto market.
On the same day, the Manufacturing PMI for April 23 will be released. If the data shows further weakness in the US manufacturing sector, it could increase fears of an economic slowdown and drive investors away from riskier assets like Bitcoin.
The Initial Jobless Claims report for April 24 will also be closely watched. Although initial jobless claims dropped slightly last week, the labor market still appears soft. A surprise jump in claims could spark fresh recession concerns and put pressure on Bitcoin and other risk assets. On the other hand, continued declines in claims could lift market sentiment and boost appetite for crypto in the short term.
Lastly, the Consumer Sentiment report for April 25 will provide insights into the overall sentiment of consumers. If the report confirms a bleak outlook or shows only a modest improvement, it could drag down interest in speculative assets like crypto. However, a significant improvement in sentiment could give Bitcoin a short-term boost as risk appetite returns.
Traders and investors should be prepared for potential volatility in the crypto market as these economic reports are released. While Bitcoin is currently holding steady, the numbers could lead to significant moves in the market.
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